Spanish meat sector faces uncertainty

The Spanish meat industry is currently going through a difficult situation. On the one hand, there is an increase in production costs due to higher prices for raw materials and capital goods, higher prices for electricity and energy, as well as for labor, which is also exacerbated by the inflationary trend of recent months and puts pressure on supply chains. This creates uncertainty in the sector in the short to medium term.

One of the main consequences of this situation is the confirmation of the fall in beef consumption due to the high cost of the product and the switch to other products such as pork; as well as a decrease in production caused by a combination of all these factors, which will most actively manifest itself in the third quarter.

Several recovery expectations are set for the summer season with the resumption of tourism and the hospitality industry, although the situation is expected to worsen again and become more difficult in the fall, according to a note published by ANICE Beef Group.

On the other hand, beef exports are growing due to increased demand in international markets. In 2021, 243,612 tons of beef were exported, worth more than 943 million euros, up 4.6% in volume and 16.5% more in value compared to the previous year.

The latest data currently available, covering the first four months of the year, also reflects an increase in beef exports, with over 59,000 tons exported, up 7.51% over the same period in 2021. Although the largest market for Spanish beef is in the European Union, where almost 90% of sales go, Spanish beef continues to expand its presence in third countries, especially in countries such as Canada, Indonesia and the United Kingdom. “While current expectations are good and exports continue to grow, efforts need to be made in the medium term to focus on opening up new destinations and diversifying markets,” ANICE Beef Group said.